Lean Operations

Growth is slowing in mature and emerging markets alike, which makes reducing operational costs even more important for consumer products companies. Organizations that rank as top value creators typically reduce costs faster than their peers. Companies seeking to achieve operations excellence must focus on five critical actions: striving for product line simplicity, adopting lean practices, modernizing network design, optimizing supply chains, and managing transportation costs.

Reducing operational costs is critical for consumer products companies. Top value creators reduce costs faster than their peers do. To achieve excellence, companies should focus on actions such as product line simplicity and managing transportation costs.

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Five Levers for Operational Excellence

Simplicity. Apply a holistic approach, starting with the consumer in mind. Address complexity drivers throughout the value chain.

Lean Manufacturing. Combine a top-down approach that focuses on specific costs and a bottom-up approach that focuses on management skills.

Network Optimization. Align the manufacturing network with a long-term vision of market evolution.

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